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EA6.
LO 5.3There were 2,400 units in ending work in process inventory that were 100% complete with regard to material and 25% complete with regard to conversion costs. Ending work in process inventory had a cost of $9,000 and a per-unit material cost of $2. What was the conversion cost per unit using the weighted-average method?

Respuesta :

Answer:

The conversion cost per unit using the weighted-average method is $ 7.

Explanation:

This problem requires us to calculate the conversion cost per unit using the weighted-average method. The detail calculation is given below.

A- Ending Inventory = 2,400 units

B- Material % completion = 100%

C-Conversion Cost % Completion = 25%

D-Ending inventory total cost = $9,000

E-Ending inventory conversion cost = D- (A*2) = $ 4,200

F- Per unit conversion cost = 4,200/ (2,400*25%) = $ 7

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